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The ease of online shopping is attractive to several avid buyers, be it for the grocery order or clothes. Nothing beats having everything delivered right at the door at the click of your house. However, while you rush on filling up your virtual shopping basket, do you consider the safety of Payment for Online Purchases? Moreover, PayPal and Credit cards are surely a few of the most famous alternatives for payment of online shopping. However, which one is better? Here are a few of the pros & cons of utilizing either the PayPal account or credit card. Let’s decide which one is the most suitable for you.

What PayPal offers

The Online Payment via PayPal is a default payment alternative for eBay purchases. However, it holds a 5th position in the list of the most-utilized payment tactic at every online retailer. The first 4 ones are  MasterCard, Visa, Discover, and American Express.

How secure is PayPal?

End-to-end encryption is used for sending every piece of PayPal transaction data. This is designed to thwart the hacker who looks for capturing private details while moving from shopper-to-seller. It means that there is no revelation of your financial details, even to the recipient. The PayPal application users can employ the 2nd authorization factor for making every transaction secure. After enabling the SecurityKey feature, you will get the temporary safety code by entering in text message & the password.

How secure are the Credit Cards?

Credit card

Now, let’s talk about Online Payment via Credit Card. Its firms have been popular for being somewhat resistant to a few of the cybersecurity practices which PayPal employs. As per the Financial Services Roundtable, the banking industry doesn’t pay the hackers for alerting them to safety flaws, for instance. On the other hand, PayPal is the Holy Grail for any hacker. Just due to the firm has not ever been hacked does not imply that it never will be.

Tips to protect yourself

Coming right down to it, much of the responsibility for account safety is required to be taken through the user. Yes, not the issuer but the user himself/herself! This is true whether the firm is American Express or PayPal. Also, it is irrespective of whether it is the plastic card or virtual account.

In the debate of Credit Card v/s PayPal, let’s see how to ensure safe payment utilizing the former –

  • Utilize only the bank-owned ATMs for getting cash.
  • Cut up the card you still have which does not have the chip in it. Avoid using the reader which needs you to swipe the card since the chip reader is malfunctioning or the store has an outdated machine.
  • Pay for the gas not at the pump but inside the station. (Gas pumps are notoriously convenient for outfitting with the card skimmer which steals account details as it is utilized)

While utilizing the Credit Card or PayPal online –

  • Confused about using PayPal v/s credit card? Don’t utilize the public Wi-Fi available at airports and coffee shops. Instead, make sure to use the VPN (Virtual Private Network).
  • Only make online shopping on safe websites. These often have a URL that begins with HTTPS (instead of HTTP) & displays the lock symbol. These are signals that the connection between your website’s server and web browser is encrypted. It is, by no means, guaranteed security, however, it closes off one avenue for fraud.
  • Beware of phishing attacks. These often arrive through a text message or email promising you something amazing, if only you click the mentioned link.
  • Don’t store the credit card details online at the much-preferred retailers. Type it in every time.
  • Alter the passwords frequently on the credit card accounts (along with the PayPal account). Don’t utilize your name, the birth dates of your kids, or another too-obvious password.

Have you ever considered the idea of credit card payment via PayPal? For accepting debit and credit card payments with PayPal, you have to sign-up for the PayPal Business account. Then, you need to download the app from PayPal Here and get the PayPal card reader. There is no long-term contract, hence you can close the account anytime without any penalty. For PayPal’s standard services of credit card processing, you only have to pay transaction fees. There is no application or setup fee, annual or monthly maintenance fees, or PCI-associated charges.

Fees and Costs of PayPal v/s Credit Card

  • While utilizing a credit card for buying something in the US, you often don’t get hit with additional fees. The merchant pays the interchange rate, which is often 1%-3% of the buying rate along with the flat fee.
  • When it comes to PayPal fees v/s credit card fees, keep this particular point in mind. While purchasing with the former, it is also free (as long as it is within the US). Similarly, the merchant pays the fee and that is 2.9% along with 30% per sale.

Furthermore, PayPal has it in fine print on the site that they charge you the 2.5% currency exchange rate. However, it is often nearly 3%-5%. It can be because they consider the lower-market rate while converting to the local currency for the higher margins. Want to know the best way for saving some additional quid in terms of PayPal conversion v/s credit card? Pay for online shopping of books, toys, clothes or any kind of products with a card that does not charge foreign transaction rates. This way, you will get the best of both worlds. You will often have a better exchange rate as compared to PayPal & won’t encounter any nasty rates either.

The credit card or PayPal/ PayPal credit card can be utilized offline and online for daily transactions between sellers and buyers. Opting for which one to utilize is a matter of ease as well. Also, it includes the unique features which come with the account & interest rates charged by the firm. Always remember that whichever you utilize, a bit of the responsibility for security rests with you.